Comex High Grade Copper Futures (HG) Technical Analysis – November 17, 2015 Forecast
Sellers continued to pound March Comex Copper futures, driven by the stronger U.S. Dollar and expectations of weaker demand from China. Today’s U.S. consumer inflation report is likely to solidify the chances of a Fed rate hike and demand is not likely to turn around over the near-term so the only thing that can help prices are technical factors.
Today is the ninth day down from the November 4 top at 2.3695 so the session begins with copper in the window of time for a potentially bullish closing price reversal bottom. We won’t know if this has formed, however, until the close. We’ve already seen the lower-low so all we’ll need is a close over 2.1255 to produce the chart pattern.
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If you are looking to play for a counter-trend move then watch the price action over the next several days. New lows followed by closes over the mid-point of the session or over the opening will also be signs of short-covering or profit-taking, but the best sign that a bottom has been reached will be the closing price reversal bottom.
Earlier in the session, the market traded down to 2.0750. Psychological targets remain 2.0500 and 2.0000.
On the upside, watch the price action at yesterday’s close at 2.1255. The nearest resistance angle drops in at 2.1895.